Professional Judgment Concept to be Broadened in Russia

AO UniCredit Bank
Tue, 01/08/2017

The CBR will broaden the usage of the “professional judgment” concept to restrict financial organisations’ actions directed against client interests.                                                          

The professional judgment concept includes the exposure and suppression of actions which are technically legitimate, but in fact go against the client’s interests.                                           

It will be applied to the following areas: the determination of the related parties, the valuation of the company’s management reputation and its business plans, the evaluation of assets and liabilities, the estimation of whether their actions meet the client’s interests, and the estimation of the quality of the risk management system and internal control.

Questionable assets shall be returned to the clients and lost profit is subject to be paid out through the beneficiaries’ funds.


Contact Details
Daria Fadeeva
Relationship Manager